Turkey Economic Confidence Index rose to 98.9 in March

Turkey’s Economic Confidence Index  rose by 3.3% in March from 95.8 in February to 98.9 in March. The recovery was across the board, having rots in increases in consumer, manufacturing industry, services and retail trade confidence indices. The construction sector however weakened further.

The data covers the period that was before the central bank Governor Agbal being sacked by President Erdogan for the March rate hike.  The rate hike was delivered to stabilize the Turkish currency hence fight with Turkey’s very high inflation.

The chaos in the markets since that that resulted in 14% value loss in TL along with higher yields translate to the fact that such recovery in the Economic Confidence Index is unlikely to prevail.  The manufacturing sector however enjoys strong external demand and its good mood is to prevail.  The remaining sub-sectors starting with consumers, services, retain and construction are all to be hit by the turmoil in Turkey’s economy management.

With COVID-19 cases rising in Turkey and new curfew measures to b implemented in the cafe & restaurants sector, the services sector confidence is to get the harsher hit.

Economic confidence index, March 2021

Consumer confidence index increased by 2.5% to 86.7,

Real sector confidence index increased by 1.4% to 110.2,

Services confidence index increased by 5.1% to 105.5,

Retail trade confidence index increased by 0.2% to 109.2 in March,

While the construction confidence index decreased by 4.0% to 79.8 all compared to the previous month.